Title

The effects of environmental regulation on the stock market: the French experience

RIS ID

134469

Publication Details

Pham, H. Nguyen Anh., Ramiah, V. & Moosa, I. 2019, 'The effects of environmental regulation on the stock market: the French experience', Accounting and Finance, vol. Online First, pp. 1-26.

Abstract

The impact of environmental regulation on the French stock market is investigated by using event study methodology and asset pricing models. The impact of environmental regulation on the stock prices of environmentally friendly businesses and polluters is assessed. Additionally, we estimate the change in systematic risk following the introduction of new regulations. According to the results, the French stock market is particularly sensitive to the environmental regulation embodied in the European Union Emissions Trading System and less so to the regulation on water, soil and air. The chemicals, oil and gas industries exhibit negative reactions, whereas other polluters (such as construction and materials, and industrial transportation) produce positive abnormal returns.

Please refer to publisher version or contact your library.

Share

COinS
 

Link to publisher version (DOI)

http://dx.doi.org/10.1111/acfi.12469